Gavin Martin, the general manager of Exceed Software, must decide when to release the new version of Exceeds spreadsheet package, Quickspread 2.0. Development of Quickspread 2.0 is complete; however, the NSB sticks containing the installation files and user manuals have not yet been produced. The product can be shipped starting 1 July 2021. The major problem is that Exceed has overstocked the previous version of its spreadsheet package, Quickspread 1.0. Martin knows that once Quickspread 2.0 is introduced, Exceed will not be able to sell any more units of Quickspread 1.0. Rather than just throwing away the inventory of Quickspread 1.0, Martin is wondering whether it might be better to continue to sell Quickspread 1.0 for the next three months and introduce Quickspread 2.0 on 1 October 2021, when the inventory of Quickspread 1.0 will be sold out.

The following information is available:

Particulars	Quickspread 1.0	Quickspread 2.0
Selling price	$165	$215
Variable cost per unit of NSB Sticks and user manuals	24	38
Development cost per unit	60	95
Marketing and administrative cost per unit	31	41
Total cost per unit	115	174
Operating profit per unit	50	41

Development cost per unit for each product equals the total costs of developing the software product divided by the anticipated unit sales over the life of the product. Marketing and administrative costs are fixed costs in 2021, incurred to support all marketing and administrative activities of Exceed Software. Marketing and administrative costs are allocated to products on the basis of the budgeted revenues of each product. The preceding unit costs assume that Quickspread 2.0 will be introduced on 1 October 2021. Required

(1) Based on financial considerations alone, should Martin introduce Quickspread 2.0 on 1 July 2021, or wait until 1 October 2021? Show your calculations, clearly identifying relevant and irrelevant revenues and costs.

(2) Identify revenue / cost items which would be irrelevant for making the above decision on launch and shipment date. Briefly explain the reasons why you believe the items you list are irrelevant.

(3) What other factors might Gavin Martin consider in making the decision of launching and shipping Quickspread 2.0 software?